Labor Unemployment Insurance and Pension Asset Allocations

2020 ◽  
Author(s):  
Yina Liang ◽  
Paraskevi Vicky Kiosse ◽  
Monika Tarsalewska
Keyword(s):  
Unemployment Insurance ◽  
Pension Asset ◽  
Asset Allocations

Disclosure of pension asset allocation and expected rate of return management

2018 ◽  
Vol 26 (2) ◽  
pp. 182-207 ◽  
Author(s):  
Seokyoun Hwang ◽  
Bharat Sarath
Keyword(s):  
Asset Allocation ◽  
Voluntary Disclosure ◽  
Vital Role ◽  
Rate Of Return ◽  
Content Type ◽  
Ordinal Measure ◽  
Indicator Variables ◽  
Pension Asset ◽  
Asset Allocations ◽  
The Impact

Purpose The purpose of this paper is to examine whether the expected rate of return (ERR) management is related to disclosure of pension asset allocation. FAS 132R(1), which requires firms to disaggregate the detailed categories of pension asset allocation, provides a natural experiment setting for investigating the effect of enhanced transparency on firm behavior. Design/methodology/approach The authors focus on the variation of voluntary disclosure and its effect on ERR management under the two different reporting regimes. The authors measure the variation of voluntary disclosure of the pension asset allocations in the pre-period of FAS 132R(1), by using the self-constructed disclosure score. Findings First, firms create flexibility in their choice of ERR through opaque disclosure of pension asset allocation. Next, firms with poor disclosures are more likely to adjust ERR downward when accounting standards require greater transparency, implying that, for firms with poor disclosures, mandated transparency in pension asset allocation plays a vital role in reducing the ERR management. Research limitations/implications The authors directly illustrate the impact of FAS 132R(1) on ERR management. The authors find that the impact of mandated transparency is not uniform across firms. Next, this study highlights the importance of disclosure in restricting managers’ earnings management motivation. Originality/value The authors hand collect the asset allocations under pre-FAS 132R(1) period from the 10-K pension footnotes for all S&P 500 firms, which allows the authors to identify the disclosure variation amongst the firms. Based on the variation of disclosure, the authors construct the ordinal measure of disclosure scores on which the testing indicator variables are built.

Employees' risk attitude and corporate risk taking: Evidence from pension asset allocations

2018 ◽  
Vol 48 ◽  
pp. 261-274 ◽  
Author(s):  
Yanling Guan ◽  
Dragon Yongjun Tang
Keyword(s):  
Risk Taking ◽  
Risk Attitude ◽  
Pension Asset ◽  
Asset Allocations ◽  
Corporate Risk

Financial reporting and economic implications of statements of financial standards No. 132(R) and No. 158

2014 ◽  
Vol 13 (1) ◽  
pp. 88-103 ◽  
Author(s):  
Sergey Komissarov
Keyword(s):  
Financial Reporting ◽  
Research Question ◽  
Causality Analysis ◽  
Rates Of Return ◽  
Expected Return ◽  
Economic Implications ◽  
Content Type ◽  
Disclosure Requirements ◽  
Pension Asset ◽  
Asset Allocations

Purpose – The purpose of this paper is to address two questions: did adoption of Statements of Financial Accounting Standards No. 132(R) and No. 158 affect neutrality of the financial reporting with regard to the disclosed expected rate of return (ERR) on pension assets assumptions, and did pension asset allocations change in response to the new recognition and disclosure requirements? Design/methodology/approach – The author uses several measures of association between reported expected return and pension assets allocations to assess neutrality of the reported ERR. The series of tests explores changes in correlations between asset allocations and expected rates of return and changes in the implied risk premiums following adoption of Statements No. 132(R) and No. 158. Granger causality analysis is used to explore the second research question: did pension asset allocations change in response to the new recognition and disclosure requirements? Findings – The empirical results are consistent with improved neutrality of financial reporting following adoption of Standard No. 132(R). There were no detectable changes in neutrality following adoption of Standard No. 158. While the data are consistent with portfolio allocations changing to a greater degree than did expected rates of return following Statement No. 132(R) adoption, the effect appears short-lived. Originality/value – The overall results are consistent with Standard 132(R) having a positive effect on the neutrality of the reported ERR. Also, there is no evidence of persistent and systematic structuring of transactions around preferred financial reporting outcomes.

In and Out of Unemployment Insurance in Canada: A Dynamic Approach

1994 ◽  
Author(s):  
Dominique M. Gross
Keyword(s):  
Unemployment Insurance ◽  
Dynamic Approach
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